What are Futures? 

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Basically: The promise to buy something in the future with a certain price determined right now.

This dude deserves so much more attention on RU-vid. I've been subbed for along time. And his videos always bring value. And it's free!

I’m drunk. He sounds smart. Gonna short gold tomorrow right?

Incredible, thanks for the video. Been a sub for some time and I really appreciate your videos. It's really difficult to find a good quality video with an explanation coming form someone that knows his stuff. Thanks dude.

Futures are something I wasted. Am sad now.

I think a deeper dive into the math behind the finance would be very interesting.

9:05 "Hit the bell icon if you want notifications about future videos" ... lol

After reading multiple articles and getting lost in the jargon, thanks for having this make sense in as simple and concise a way as possible.

Always love seeing a plain bagel video pop up in my feed.

I rarely comment on videos, but this guy has explained it very well that I will make an exception here. You deserve more recognition and subscribers.

Another great explanation video from my favourite business channel

Helpful, thanks. Don't think I've seen anyone tackle futures on RU-vid :)

Very detailed and specific, yet easy to follow even for a beginner like me. Love your videos!

Interesting topic and thanks for sharing this!👍

all of your videos are fantastic, appreciate it!!

Thanks for the video, highly informative. Keep up the great work

Great presentation, as always, Richard! :)

Thank you sir! This video just cleared all of my doubts and questions out on the basis risk.

This was extremely helpful and highly accessible! Thank you so much!

Your videos are amazing, you know how to teach with just enough detail but not making it simplistic.

Impresive! I am preparing for the CFA Level 3 exam and this video just helped me put a lot of stuff into perspective.

Thank yiu for this simple explanation!!! Never understood this until just now

Thanks man, got an exam on the topic tomorrow you Saved me an hour

Even after 2 years I still came back to try & learn about these topics. Thank you!

keep up the good work nd keep making these informative videos....appreciate it mate :)

Thanks for making this video. I work doing oil hedging using futures on a daily basis so it's cool to see you guys cover what I do.

Thank you for the information 😃, very useful for the foundation information for Futures. 💎⭐️

Thanks for sharing good info on future. Can you do a video on oil futures & how to read oil futures chart?

Finally a high quality explanation, thank you

Thank you for the detailed explanation

Great video. Would you also explain what is macroprudential policy tools in your future videos. Thanks.

Love this. Short and easy to follow. When explained this way it expands your knowledge further more easily. 🙏 I am an OAP woman getting to grips with this 😂

Thank you so much for your content. I really learn a lot here.

Love your channel :)

Very well explained👍🏻

Thanks for the video! I have the following question, could you give me an example for a deal on the commodity market in the future and one for the spot market?

Can you cover Mini Futures, Turbo Warrants, Tracker and Leverage Certificates

Richard, thank you for your hard work and educational content that you provide. This channel is the only "Plain Bagel" I've come across so far and your narration style as well as information is invaluable. Your channel can be easily compared to TheFutur (business of design), Like Stories of Old (philosophy), or PiXimperfect (photoshop) by the depth of your content. Should you care about the overhyped useless channels like Tai Lopez's one, please, focus on what you do best and you'll beat them easily. Like you said, investors can't wait for 10 years to ripe the fruits and quit holding their assets for 4 years only. Keep it up!

you're the first youtuber who i will turn on the notification bell for

Thank you!

Bagel many thanks. Two requests can you cover 1) how to trade Futures perhaps using a live/demo trade and 2) cover LEAPS how to trade those also, are they accessible to retail traders and if so on comparable terms to professional traders etc... Thanks Mr Bagel!

Very good!

I was really here when this channel started. I'm soo happy to see this lol

FANTASTIC EXPLANATION

you sir should definitely open a channel with deep explanations of these concepts :0

THANK YOU

Nice shirt bro!

THNAKS ALOT

Thank you

Thanks for this

This video is so good. THANK YOU!

Great explanation thanks:)

5:10 What's the difference between a cash-settled future and a contract for difference?

Good video. But you should have gone into more detail about the daily mark-to-market.

Great video!

Reading books about Futures and having a headache already coz I can't understand. Now you explained it in just 10 minutes. Amazing! Thank you!

Congrats on teaming up with Ted-ed on their latest video, love your stuff :D

Really good and clearly explained

now i finally know how the one guy in squid game got reallly broke really fast

i never watch so many videos from a single channel. thank you mate!! now i am studying finance and your videos helps me a LOT!

You can have a spot price for a given point in the future, which is what implied volatility dictates at a given period in time, correct? Does it work for commodities and bonds the exact same?

Excellent. I have an inside tip that owing to a poor harvest the frozen concentrated orange market is going to fly.

The fact that futures deal with prices in the future that nobody is 100 percent sure because of a lot of elements driving a price of an asset is in itself a risk already, adding a component of being able to lever a future position makes one party be tempted to borrow that money so he or she can magnify the gain he or she is hoping to get and when things don't happen to wat hey expect, it also magnifies their losses on their equity or margin. If you put your fate on Future + Leverage you are pretty much risking it all

Hey plain bagel, Love your videos! What are some of your favorite books that helped you learn this knowledge?

This guy is the best !

First time I listened to a vid on futures felt like I was watching a bit of Greek mixed with English. Wanted to cry. Let's see now. Just watched, hallelujah! I now understand futures! Thank you!!!!!!!!!!!!

nice video! Could you do a video explaining how certain types of risks, like an executive involved in a scandal or a company doing something stupid, can affect a stock's price? I know you went over it in 'Understanding Investment Uncertainty', but it was brief. I want to know why certain things (that aren't so obvious) drives the stock price up or down. Thanks!

This Guy knows what he's talking about! Good sheet 😎

Because of you I am learning and loving finances so much! I will probably study finances instead of computer science in university!

Do a video on the complicated stuff, with formulas. "Could fill a video on its own" so ...make it plz?

what’s the difference between futures and options ?

so one of function is we can hedge our speculative asset such as crypto to the futures contract that has negative correlation within crypto so we hedged against the risk of the crypto. is it the case?

Do you need to know the finer details on a futures contract before you bid on it?

Can you please explain why higer gdp per capita doesn't mean higher salaries and what influences salaries in different countries?

How does it work when the contract expires? There are several options , right? Rollover to the next or actually take the commodity if you are long? Do you mind explaining please?

that was very informative thank you f

Unrelated to this video, but what do you think of Share Repurchasing, on the whole? For example, doing a little digging I determined that Boeing spent something like $15Bn between 2013 and 2019 on share repurchasing, and only $3Bn on developing the troubled 737 Max airplane. The incentive structures at the executive level seem troubling.

So is it like the same thing as spot trading. Can I just place a trade directly off of MT4/5, tradingview, ninjatrader ECT. after doing my fundamental and technical analysis.

Love it so much my favorite woo🎉🎉🎉🎉🎉🎉🎉

If there a large negative interest rates it will turn these upside down as cost to hold will be a benefit?

i thought the price say on a crude oil Depth of Market Chart was the actual price of oil at that time? Is it just the price on the contract then?

Tkx for these ultraclear explanations:). I often hear the words short and long on financial channels. Do these words necessarily refer to futures, or do they sometimes apply to corporate shares?

thank you. very well explained. that baker is making very plain bagels

best youtuber ever

underrated channel

Great video as usual. I am wondering in the future long position what if instead of selling at the market price I hold onto the share. Would it not be a wise idea when the market price for the share has fallen and selling it immediately nets me a loss?

Here's something I don't understand about futures that I hope somebody can answer me. When stocks are bought and sold, every share that is bought comes out of the account of the seller and goes to the account of the buyer. But in the futures market, for every contract that is bought there must be a corresponding seller, and both long and short positions must be held either until the contract expires, or until both sides net out their positions. This means that in every big market move (where due to leverage "big" could be only 1% on the underlying) there is of necessity the fact that half the contracts in the market are losers. And these losses can be spread out a bit by the losers netting their transactions during the move, but this only shifts part of the losses to somebody else. Who is willingly taking these positions? In some markets like commodities there are producers and consumers of the underlying which imply some natural supply and demand, but in something like index futures why does it seem there is an inexhaustible supply of traders willing to take a loss? Are there really a lot of people constantly hedging their portfolios? Are new futures traders starting out as fast as existing unlucky ones are getting washed out of the market? Are there market makers who can somehow effectively arbitrage between the spot market and the futures market so as to effectively provide liquidity to either side of the transaction without delta risk even when it would seem that a simple buyer or seller would be losing money? Is there some other explanation?

I like how this lad coordinated his glasses, shirt, and pants.

I wish he would've explianed the closing of the positions more thoroughly. I mean you don't actually buy it sell at the spot price afterwards...the broker handles this part right? I'd really like for someone to explain the logistics that actually go one behind the scenes.

Love how the Baker, farmer and video guy are all the same person

Hard luck! for someone who made a future on oil, this year

Hi. I really like and appreciate your videos. Can you make a few on internacional trade? If not, can anyone recommend me a similar changes that makes that kind of videos? Thanks

Should've done a Ron Burgundy when you had the tickers on screen. "I need MORE GRAPHICS!!!"

Can you do a video on hedging?

This is legit my new favorite channel. I'm a 25 year old man for fucks sake. I'm far too late learning this stuff.

Is the derivative value differential over time differential?

I actually got into investing backwards. I started out by shorting naked futures options! 😋😎

So is it basically like short stocks?Or the opposite?

So basically something like options for commodities?